Flexible Spending Accounts allow employees to set aside funds into one or more accounts and reimburse themselves for certain qualified expenses not covered by their medical, dental, or vision plans. The amount that is set aside reduces current taxable income and increases spendable, take-home pay.
Employees who qualify for benefits are eligible to participate in a Flexible Spending Account for health care, dependent care, and parking. Initial enrollment takes place within the first 31 days of hire, and coverage normally begins the first of the month following the full-time or part-time hire date.
Flexible Benefit Administrators (FBA) is our new provider for the Flexible Spending Accounts. Please review the following information.
Changes may be made during open enrollment or within 31 days of a qualifying event (change in status). Qualifying event examples include marriage, divorce, birth, family member loss of coverage, and death. Once enrolled, payroll deductions will be in effect until the end of the year.
Employees must re-enroll for the Flexible Spending Account annually during Open Enrollment.
Employees may contribute up to $2,750 annually for calendar year 2021 (spread over 24 pay periods) to the Health Care FSA, up to $3,180 annually to the Parking/Transit FSA, and up to $10,500 annually or $5,250 if married and filing separately to the Dependent Care FSA. The IRS determines if an expense is qualified.
What Happens to Your FSA if You Leave or Retire From the City
IRS regulations allow employees to submit claims for reimbursement of expenses incurred prior to their separation or retirement date. Employees have until March 15 following the end of the plan year to submit claims for expenses incurred prior to separation or retirement.
Under the provisions of the Consolidated Omnibus Reconciliation Act of 1985, or COBRA, you and your covered family members may choose to continue your FSA coverage after your coverage is scheduled to end. You have 60 days from the date of your COBRA election notice to elect to continue this benefit. If you do not respond within 60 days, your rights to continue coverage end.